Iran oil firm, Total to develop world's largest gas field
National Iranian Oil Company (NIOC) and Total have signed a 20-year contract for the development and production of phase 11 of South Pars (SP11), the world's largest gas field, according to a company release.
The project, which will be developed in two phases, can produce 400,000 barrels of oil equivalent per day including condensate and will supply the local market starting 2021.
It is part of Total's strategy to boost its presence in the Middle East and "grow its gas portfolio by adding low cost, long plateau assets," said Patrick Pouyanné, Chairman & CEO of Total.
Total has 50.1% interest in the SP11 project alongside the Chinese state-owned oil and gas company CNPC (30%), and Petropars (19.9%), an NIOC subsidiary.
"We are proud and honored to be the first international company to sign an IPC (Iranian Petroleum Contract), which offers an attractive commercial framework, following the 2015 international nuclear accord (JCPOA) and to therefore contribute to the development of relations between Europe and Iran. Total will develop the project in strict compliance with applicable national and international laws”, said Pouyanné.
